Question

Boysenberry Company manufactures vacuum cleaners and follows the first-in, first-out (FIFO) method to record inventories. The journal entry to record requisitions of materials by the Assembling Department for the month of June will include______

Answer 1

The journal entry includes debiting the Assembling Department's Work-In-Process inventory and crediting Materials inventory, to reflect the use of materials in production based on the FIFO method.

Step-by-step explanation:

The journal entry to record requisitions of materials by the Assembling Department for the month of June for Boysenberry Company, which follows the first-in, first-out (FIFO) method for recording inventories, will include a debit to the Assembling Department's Work-In-Process inventory and a credit to the Materials inventory. The debit represents the transfer of materials into production, while the credit reflects the reduction of the company's stores of raw materials.

The entry would typically be formatted in a journal as follows:

• Work-in-Process Inventory - Assembling Department (Debit)
• Materials Inventory (Credit)

This reflects the flow of costs from materials inventory into work-in-process on the basis of FIFO, where the oldest materials costs are transferred first.